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Untitled HOLMES INSTITUTE FACULTY OF HIGHER EDUCATION HI6025 Accounting Theory and Current Issues Group Assignment T2 2020 Assessment Details and Submission Guidelines Trimester T2 2020 Unit Code...

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HOLMES INSTITUTE
FACULTY OF
HIGHER EDUCATION
HI6025 Accounting Theory and Cu
ent Issues Group Assignment T2 2020
Assessment Details and Submission Guidelines
Trimester T2 2020
Unit Code HI6025
Unit Title Accounting Theory and Cu
ent Issues
Assessment Type Group Assignment
Assessment Title Adoption of IFRSs and CSR Reporting
Purpose of the
assessment (with ULO
Mapping)
Students are required to critically examine the adoption of IFRSs and the benefits and
challenges for reporting entities in Australia or any one country of choice. They will have
to do research on relevant literature and demonstrate understanding and critical
evaluation of key disclosure issues relating to application of specific accounting
standards. They will also need to compare and contrast a real-life company’s corporate
social responsibility (CSR) reporting and recommend future directions to the Australian
financial reporting regulators. (ULO 1, 2, 3, 4, 5, 6, 7).
Weight 40 % of the total assessments
Total Marks 40
Word limit 3,000 words ± 500 words
Due Date Group Formation: Please form the group by self-enrolling in Blackboard. There
should be maximum of 4 members in a group. Email XXXXXXXXXX for
any issues with self-enrolling into groups.
Assignment submission: Final Submission of Group Assignment: Week 10, Thursday
24th of September at 11:59 pm.
Late submission incurs penalties of five (5) % of the assessment per calendar day unless
an extension and/or special consideration has been granted by Student Services of
your campus prior to the assessment deadline.

Submission
Guidelines
• All work must be submitted on Blackboard by the due date along with a completed
Assignment Cover Page.
• The assignment must be in MS Word format, no spacing, 12-pt Arial font and 2 cm
margins on all four sides of your page with appropriate section headings and page
numbers.
• Reference sources must be cited in the text of the report and listed appropriately at
the end in a reference list using Harvard referencing style.
mailto: XXXXXXXXXX
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HI6025 Accounting Theory and Cu
ent Issues
Assignment Specifications
Purpose:
This assignment aims at developing the student’s ability to critically examine the financial reporting
egulations for reporting entities in Australia or any one country of choice, and the effect of adopting IFRSs
(global accounting standards). They will also need to compare and contrast a real-life company’s corporate
social responsibility (CSR) reporting and recommend future directions to the Australian financial reporting
egulators. Students will have to research relevant academic literature, including related organisation
websites and write in-text citations in this assignment. Additionally, they will demonstrate understanding and
critical evaluation of the Australian financial reporting environment and its cu
ent regulatory framework, and
ecommend future directions to the Australian financial reporting regulators.
Required Task:
Part A
1. Choose a country that has adopted IFRSs (i.e. global accounting standards) for at least 3 or more years,
as revealed in the accounting literature, and discuss the following:
I. In what year did the country adopt IFRSs?
II. Were the IFRSs introduced all together (at once), or gradually into the local accounting standards of
your chosen country? Explain the possible reason.
III. Discuss the benefits and challenges reported in the literature about the adoption of IFRSs in your
chosen country.
2. Choose a publicly listed company from your chosen country above that you can access their annual report,
including financial statements and notes to the accounts. (e.g. Choose a company that is listed in the Australian
Securities Exchange (ASX) if you chose Australia; or Hong Kong Exchange if you chose Hong Kong etc.). Find
and download the financial statements for two (2) years as follows:
• 1st financial statement – Choose the year immediately before IFRSs adoption and

• 2nd financial statement – Choose either 2019 or 2018 only.

Compare the two (2) years’ financial statements and accompanying notes to the accounts selected above, and
discuss the following:
I. Identify and discuss any remarkable changes to the disclosures relating to any two of the following
financial aspects:
• Non-Cu
ent Assets
• Intangible Assets
• Leases
• Employee Benefits
II. Express your opinion about the usefulness of the new format of disclosures compared to the
disclosures at the pre-adoption of IFRSs. Include examples to support your opinion.
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HI6025 Accounting Theory and Cu
ent Issues
Part B
1. Discuss key trends in Corporate Social Responsibility (CSR), as reviewed in the literature in the past 5 years.
(Word limit: approx. 500 – 800 words).

2. Choose one company listed on the ASX and obtain its latest annual report (incl. financial statements).
Compare and contrast the extent of CSR reporting by your chosen company with your review of the literature
(above in 1.), by answering the following questions:
I. Evaluate the company’s extent of CSR reporting. (Include in your discussion, specific evidence of
CSR disclosures, e.g. environmental etc.).
II. Using one relevant accounting theory (e.g. PAT, Legitimacy Theory, Stakeholder Theory), explain
why particular CSR disclosures were made by your chosen company.
III. In your opinion, is there scope for improvement in CSR reporting by your company? Explain with
two specific examples.
3. Based on your findings, provide two (2) recommendations to the Australian financial reporting regulators
about the future of CSR reporting that will guide Australian public entities in the future.
Assignment Structure should be as the following:
Assignment cover page clearly stating your name(s) and student number(s)
Group’s Assignment Task Allocation table (except for Solo group members)
Abstract (one paragraph)
Table of Content
Introduction
Body of the assignment with appropriate section headings
Conclusion
List of references
Appendices (optional)
To ensure that all students participate equitably in the group assignment and that students are responsible
for the academic integrity of all components of the assignment. You need to complete the following Group
Assignment Task Allocation table, which identifies which student/students are responsible for the various
sections of the assignment.
Assignment Section Student/Students
This table needs to be completed and submitted with the assignment as it is a compulsory component
equired before any grading is undertaken. Students that are registered in a solo group are not required to
fill this table.
Page 4 of 10
HI6025 Accounting Theory and Cu
ent Issues

Academic Integrity

Holmes Institute is committed to ensuring and upholding Academic Integrity, as Academic Integrity is integral
to maintaining academic quality and the reputation of Holmes’ graduates. Accordingly, all assessment tasks
need to comply with academic integrity guidelines. Table 1 identifies the six categories of Academic Integrity
eaches. If you have any questions about Academic Integrity issues related to your assessment tasks, please
consult your lecturer or tutor for relevant referencing guidelines and support resources. Many of these
esources can also be found through the Study Sills link on Blackboard.
Academic Integrity
eaches are a serious offence punishable by penalties that may range from deduction of
marks, failure of the assessment task or unit involved, suspension of course enrolment, or cancellation of
course enrolment.


Table 1: Six categories of Academic Integrity
eaches
Plagiarism Reproducing the work of someone else without attribution.
When a student submits their own work on multiple occasions
this is known as self-plagiarism.
Collusion Working with one or more other individuals to complete an
assignment, in a way that is not authorised.
Copying Reproducing and submitting the work of another student, with
or without their knowledge. If a student fails to take reasonable
precautions to prevent their own original work from being
copied, this may also be considered an offence.
Impersonation Falsely presenting oneself, or engaging someone else to present
as oneself, in an in-person examination.
Contract cheating Contracting a third party to complete an assessment task,
generally in exchange for money or other manner of
payment.
Data fa
ication and
falsification
Manipulating or inventing data with the intent of supporting
false conclusions, including manipulating images.
Source: INQAAHE, 2020

Page 5 of 10
HI6025 Accounting Theory and Cu
ent Issues
Marking Criteria:
Marking criteria Weighting
Abstract 1%
Introduction 2%
Part A
1. Choose a country that has adopted IFRSs (i.e. global accounting standards) for at least 3
or more years, then discuss the following:
I. In what year did the country adopt IFRSs?
1%
II. Were the IFRSs introduced all together (at once), or gradually into the local
accounting standards of your chosen country? Explain the possible reason.
3%
III. Discuss the benefits and challenges reported in the literature about the adoption of
IFRSs in your chosen country.
4%
2. Compare the two (2) years’ financial statements and accompanying notes to the accounts
selected above, and discuss the following:
I. Identify and discuss any remarkable changes to the disclosures relating to any
two of the following financial aspects:
• Non-Cu
ent Assets
• Intangible Assets
• Leases
• Employee Benefits
4%
II. Express your opinion about the usefulness of the new format of disclosures
compared to the disclosures at the pre-adoption of IFRSs. Include examples to
support your opinion.
3%
Part B
1. Discuss key trends in Corporate Social Responsibility (CSR), as reviewed in the literature
in the past 5 years. (Word limit: approx. 500 – 800 words).
5%
2. Choose one company listed on the ASX and obtain its latest annual report (incl. financial
statements). Compare and contrast the extent of CSR reporting by your chosen company
with your review of the literature (above in 1.), by answering the following questions:
I. Evaluate the company’s extent of CSR reporting. (Include in your discussion,
specific evidence of CSR disclosures, e.g. environmental etc.).
5%
II. Using one relevant accounting theory (e.g. PAT, Legitimacy Theory, Stakeholder
Theory), explain why particular CSR disclosures were made by your chosen
company.
4%
III. In your opinion, is there scope for improvement in CSR reporting by your
company? Explain with two specific examples.
4%
3. Based on your findings, provide two (2) recommendations to the Australian financial
eporting regulators about
Answered Same Day Sep 03, 2021 HI6025

Solution

Abhishek answered on Sep 12 2021
153 Votes
HI6025
ACCOUNTING THEORY AND CURRENT ISSUES
ADOPTION OF IFRSS AND CSR REPORTING
Table of Contents
Introduction    3
Part A    3
1. Adaptation of IFRS in Australia    3
I. Year of Inclusion    3
II. Inclusion of IFRS    3
III. Benefits and Challenges of IFRS Adoption in Australia    3
2. Comparison of Woolworths Financial Statements of 2014 and 2019    4
I. Remarkable Changes to Disclosures    4
II. Usefulness of the New Format    5
Part B    5
1. Key Trends in CSR    5
Taking a Stance on Social Causes    5
Creating Shared Value    5
Rise of Investor Interest    6
Purpose-Driven Approach    6
2. The extent of CSR Reporting in Woolworths    6
I. Woolworths’ CSR Reporting    6
II. Reason for CSR disclosure    6
III. Scope of Improvement in CSR Reporting    7
3. Recommendations for CSR Reporting    7
Conclusion    7
References    8
Introduction
The International Financial Reporting Standards (IFRS) model has been applied in several countries and is mostly used by all major countries in the world. This gives the system an advantage for better understanding and better outreach. This IFRS is one of the most comprehensive accounting reporting systems. In this assignment, the implementation of IFRS in Australia is considered. The Woolworths group is identified in the process. The CSR implementation prices are also described vividly in the second part of the assignment
Part A
1. Adaptation of IFRS in Australia
I. Year of Inclusion
In Australia, the IFRs were adopted on January 1 2005. Initially, after its adaptation in 2005, the AASB (Australian Accounting Standard Board) made a number of changes to the IFRS standard. The
oad also eliminated the accounting policy options and disclosures. Two years later, the AAS also approved the amending standards, which rescinded the changes that were initially made to the IFRS standards.
II. Inclusion of IFRS
The AASB did not adopt the IFRS initially word by word. It eliminated specific options and added some disclosures in the process, which resulted in the rise of the Australia equivalent of the IFRS or the A-IFRS. There is comprehensive direct between the IFRS and the A- IFRS. IFRS consisted of 36 standards during the time, and in Australia, only 18 were adopted without any significant changes.
The example of such difference includes:
Addition to the IFRS 1 the Presentation of Financial Statement disclosures the disclosure requirements must also relate to the auditor's rumination and franking credits and the use of the cu
ency for the presentation other than the Australian dollar.
The elimination form IAS 7 the statement of Cash flows includes the option of allowing the usage of the indirect cash flow statement.
IAS 12 income taxes also had a part eliminated which includes the choice and the presentation of the relation between the tax expense and the profit.
The addition was made to the IAS 24 which related to the party disclosures requiring the relation to key management personnel and
Additions were made to the IAS 28, which included the investment in association for disclosure requirement and implementation guidance.
The changes that were made by the AASB on the entail application for the IRFRs is seen as it's a possible preference for companies and accounting firms. The changes made to the IFRS were also seen as a potential threat to the ability of the firms to make unreserved statements in compliance with the IFRS. The system also jeopardised the waiver that the financial statements in Australia would change received when listed on the US Stock Exchange.
III. Benefits and Challenges of IFRS Adoption in Australia
There are several benefits associated with adaptation of the IFRS system in Australia. The initial difficulties of different accounting standards make it impossible and tiresome when dealing with gaps in the financial instruments (Bugeja & Loyeung, 2017). There are a number of benefits, which IFRS gives to the multinational operation and the companies get an exposure to the foreign financial statement users. The adaptation of the IFRS is seen by experts as a relief from the different accounting standards.
Benefits Associated with the Improvement of Financial Reporting Quality and its Comparability
The IFRS standards are designed for implementation in each type of company and are globally recognised, and thus, the system of convergence initiative is to improve the financial quality and reporting practices. The government and the firms are benefited from the
anding of the IFRS standard, which is mentioned in the financial reports. The financial symmetry between the management and shareholders are reduced by the implementation of the IFRS standards. The system is also useful in protecting the interests of the minority shareholders, and their rights are protected (Nobes & Zeff, 2016). The first system also makes the market participants aware of more information and restrictive account standards, which the company may adopt for going into the future.
· The companies are also benefited from the foreign stock exchange listing.
· The inclusion of the IFRS standards are also benefits for the companies to have a strategic partnership with foreign entities.
Challenges
In the system, the IFRS implementation has its disadvantages, which are—
· The financial statements adjustments
· Employee training
· Investor education
· Impact in the remuneration plans
· Potential cost impacts
2. Comparison of Woolworths Financial Statements of 2014 and 2019
I. Remarkable Changes to Disclosures
Intangible Assets
The 2004 financial statements of wool worth include the immaterial statements as a different head under the notes on the financial statements. A very
ief account of the intangible assets is given in the annual report (Yang, 2019). The consolidated repost and Woolworths’ limited report of intangible assets are shown in comparison. The inflatables assets in 2004’ accounting statement include the liquor license and accumulated amortisation cost and the goodwill of the company and its accumulated amortisation cost. Only two heads are mentioned under the intangibles the values of the intangible assets are also given. The liquor license is also marked as non-cu
ent. A
ief note flows after the account, which offers the information that the support for the liquor has been acquired for a lifetime rather than the previous 20 years. Thus, no amortisation was charged after the year 2001, which is accompanied by a note. This publication was not under the norms of IFRS publication and was based on general Australian statements reporting standards.
The accounting statements in the year 2019, which follow the IFRS guidelines, include an extensive section for the intangible...
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